CEO's arrest rattles snack chain's shares

June Chen

Shares of snack chain Best Mart 360 (2360) dropped as much as 13 percent at one point yesterday following the arrest of its chief executive, Hui Chi-kwan, on suspicion of bribery, who had once been sentenced to eight months in prison in 2012 for selling counterfeit Burberry goods.

Best Mart 360 said in a filing on Sunday that Hui was arrested by the Independent Commission Against Corruption on August 15 in connection with an investigation related to a bribery offense.

The group added that the incident is not related to the firm and its business and operations remain normal. Cofounded by Lin Tsz-fung, Hui and Hui's sister Hui Ngai-fan in 2013, Best Mart is now controlled by a unit under state-owned conglomerate China Merchants Group, which acquired a 49 percent stake in the firm for HK$862 million last year.

Best Mart operates 167 stores in Hong Kong, Macau, and the mainland and Hui has been the group's chief executive since April 2015.

Shares in the company opened 13.4 percent lower at HK$1.35 after trading resumed yesterday in Hong Kong but pared their losses to close slightly lower at HK$1.54.

Notably, Hui had been involved in a criminal case previously in 2012.

A chain of leather goods stores owned by Hui was the agent for a handbag brand called "Polo Santa Roberta" that bore a strong resemblance to products from Burberry and was sued by the British brand.

He was ultimately convicted on 28 counts of selling counterfeit trademarked goods and sentenced to eight months in prison.